Blackstone Sells Over 31 Crore Units in Nexus Select Trust for Rs 4,355 Crore
Blackstone sells over 31 crore units in Nexus Select Trust for Rs 4,355 crore
BlackstoneNexus Select TrustReitReal Estate Investment TrustIcici Prudential Mutual FundReal Estate NewsAug 10, 2024
Blackstone currently holds around 43 per cent stake in Nexus Select Trust, which is India's first real estate investment trust (REIT) backed by retail properties.
According to exchange data, Blackstone sold 31.55 crore units in Nexus Select Trust at Rs 138 apiece, taking the total transaction value to Rs 4,354.90 crore.
Domestic mutual funds, including ICICI Prudential Mutual Fund (MF), and HDFC MF picked up units of Nexus Select Trust. Among foreign companies, US-based financial services company Wells Fargo and Morgan Stanley acquired stake in the company while French asset management firm Carmignac bought units of the REIT firm, as per the data on the NSE.
These entities acquired a total of 11.75 crore units or 7.76 per cent stake in Nexus Select Trust. They purchased these units at an average price of Rs 138 per piece, taking the deal value to Rs 1,622.49 crore, as per the data.
Many existing investors also increased their unit holdings in Nexus Select Trust. Blackstone has monetised its investment in Nexus Select Trust through this block deal.
Post divestment, Blackstone's stake in Nexus Select Trust will reduce to 21 per cent. Nexus Select Trust's portfolio comprises 17 shopping malls with a gross leasable area of 9.9 million square feet spread across 14 cities, two complementary hotel assets (354 keys) and three office assets with a gross leasable area of 1.3 million square feet.
Blackstone has sponsored three REITs in India -- Embassy Office Parks REIT, MindspaceREIT and Nexus Select Trust, which got listed last year after raising more than Rs 3,000 crore through public issues.
As per the exchange data on the NSE and BSE, Blackstone through its affiliates, Blackstone Real Estate Partners (BREP) Asia II Indian Holding Co IX (NQ) and BREP Asia SG Red Fort Holding NQ offloaded units of real estate investment trust (REIT) firm Nexus Select Trust via separate bulk deals.
A total of 31.55 crore units or 20.82 per cent stake in Nexus Select Trust was sold by Blackstone through its arms. BREP Asia II Indian Holding Co IX (NQ) sold 18.89 crore units of Nexus Select Trust on the NSE while BREP Asia SG Red Fort Holding NQ disposed of 11.82 crore units of REIT on the bourse.
In addition, BREP Asia II Indian Holding Co IX (NQ) also offloaded 83.97 lakh units of Nexus Select Trust on the BSE. The units were disposed of at an average price of Rs 138 per unit, taking the combined transaction value to over Rs 4,354 crore.
Details of the buyers of Nexus Select Trust units could not be ascertained on the BSE. Nexus Select Trust's units plunged 4.93 per cent to close at Rs 137.05 apiece on the NSE while it ended at Rs 137.88 per piece, down by 4.51 per cent on the BSE.
Frequently Asked Questions
What is the total transaction value of Blackstone's sale of units in Nexus Select Trust?
Rs 4,354.90 crore
What is the stake of Blackstone in Nexus Select Trust after the sale?
21 per cent
What is the portfolio of Nexus Select Trust?
17 shopping malls with a gross leasable area of 9.9 million square feet spread across 14 cities, two complementary hotel assets (354 keys) and three office assets with a gross leasable area of 1.3 million square feet
Who are the buyers of Nexus Select Trust units?
Domestic mutual funds, including ICICI Prudential Mutual Fund (MF), and HDFC MF, as well as foreign companies such as Wells Fargo and Morgan Stanley
What is the impact of the sale on Nexus Select Trust's units?
Nexus Select Trust's units plunged 4.93 per cent to close at Rs 137.05 apiece on the NSE while it ended at Rs 137.88 per piece, down by 4.51 per cent on the BSE
Related News Articles
RERA: A Game Changer for Real Estate in India?
The Real Estate (Regulation and Development) Act, 2016, has brought transparency and accountability to the Indian real estate sector. But is it enough?
Mumbai Property Prices to Rise as Maharashtra Govt Hikes Ready Reckoner Rates by 3.4%
In a significant move that will affect property buyers, sellers, and real estate investors across Maharashtra, the state government has officially increased the ready reckoner rates by 3.4%. This decision is expected to have a notable impact on the real estate market in Mumbai and other key cities in the state.
MMRDA and WEF Partner for Sustainable Development, Aiming for INR 300 Billion GDP by 2030
The initiative is expected to create millions of high-end jobs across various sectors, bolstering Maharashtra's economy by promoting real estate, manufacturing, and services.
Grahm Invests Rs 100 Crore in Real Estate Platform by FY26
Grahm, a leading real estate company, plans to invest Rs 100 crore in its real estate platform by FY26, focusing on expanding its operations in key cities like Pune, Ahmedabad, Jaipur, and Lucknow.
Ratan Tata to Receive State Honours for Last Rites: Maharashtra CM
Maharashtra Chief Minister Eknath Shinde has announced that the last rites of the renowned industrialist Ratan Tata will be performed with full state honours, recognizing his immense contributions to the business and social sectors of the country.
Essar Renewables' Major Investment in Maharashtra: Rs 8,000 Crore and 2,000 Jobs
Essar Renewables is set to make a significant investment of Rs 8,000 crore in Maharashtra, which is expected to generate 2,000 jobs in the renewable energy sector.